Shipping company pegs IPO price at P1.88/share
Tugboat firm Harbor Star Shipping Services, Inc. has set the final price of its initial public offering at P1.88 per share for a total issue size of P341.41 million.
This is after the firm decided to reduce the maximum offering price to make it more attractive amidst the more volatile environment. In a disclosure to the Philippine Stock Exchange, the firm said earlier that it was lowering the maximum price of its IPO from the original P3.27 per share to P2.50 per share after taking into consideration its June financial performance and current market conditions.
Harbor Star is still planning to list a total of 605.24 million shares of which 181.6 million shares will be offered to the public. The IPO shares are equivalent to 30 percent of Harbor Star’s outstanding capital.
Net proceeds from the offering amounting to P540.83 million will be used in the fourth quarter of the year for the acquisition of tugboats for domestic and international expansion and refleeting (175.66 million).
The firm will also spend P70 million to acquire LCT barges or tug and barge tandems for lighterage operations and settle a P118.55-million bridge loan for the purchase of an AHTS vessel. It will also retire P45 million worth of debt.